12/02/2006

Stock-Market Skeptics Fall in Line

The Wall Street Journal sums up pretty well the problems faced by skeptical and persistent bears. The market does a pretty good job of punishing sloppy and misguided thinking. The hedge fund world is even more ruthless, a few months or quarters of under performance and the investor start bailing out. But some people never learn.

The stock market's four-month rally isn't being driven by bullish money managers, but by skeptical former bears who see little choice but to join in. The urgency is only increasing as the end of the year approaches and Wall Street gears up for the game of judging and compensating based on annual returns.

3 comments:

walter said...

ok, so that being said, will the dow see new highs before the end of the year?

on Friday December 29, 2006, will the dow close at year highs?

as for me, i dont really care and it doesnt affect me or my trading one way or the other - like you say, you can find bull stocks in bear markets

Pradeep Bonde said...

Dow will be higher in 2007 based on current earnings trend and weaker dollar trend. But the dogs of Dow.

Pradeep Bonde said...

Buy the Dogs of Dow